Bank of China to Sell up to $5.8 Billion in Bonds
Beijing is taking new measures to rein in inflation and overheating in the economy, Business Week reports:
Bank of China plans to sell up to 40 billion yuan ($5.8 billion) in bonds to replenish its capital and meet government standards following a record surge in lending last year amid Beijing’s stimulus measures, a state-run news agency reported.
Regulators have warned some banks that they have fallen below minimum capital requirements after handing out some 9.5 trillion yuan in loans last year. Banks are expected to scale back lending to roughly 7.5 trillion yuan in 2010.
Bank of China’s proposal still requires shareholder approval at a meeting in March, the Xinhua News Agency said in its report late Saturday. Approval is likely a formality because the government and state-linked institutions control a majority of the bank’s shares.
